Shell’s Arctic ships head to Asia for repairs

The future of Shell Oil’s $4.5 billion investment in drilling for oil in Arctic waters has been thrown into question with news that both of Shell’s exploratory ships, one of which ran aground on New Year’s Eve, are headed to Asia for extensive repair work.

The Kulluk, which broke is tow lines in a Gulf of Alaska story, went aground on Sitkalidak Island near Kodiak Island, sustaining damage to its hull and generators. The Noble Discoverer, which dragged anchor and nearly ran aground in the Aleutians, needs repair to its main propulsion ship.

“We are exploring a range of options for exploration work offshore in 2013,” Shell said in a terse statement. It added, referring to the drilling ships, “The outcome of further inspections for both rigs will determine the schedule and timing of their return to service.”

The Shell Oil drilling ship Noble Discoverer dragged its anchor and almost ran aground last summer near Dutch Harbor on Unalaska Island, Alaska. It was one of many mishaps to hit Shell's plan to begin exploratory oil drilling in Arctic waters. The Noble Discoverer now needs propulsion work and is being towed to Asia. Photo: Capt. Kristjan B. Laxfoss / AP

Shell was scheduled to begin operations in a big way last summer, drilling in the Chukchi and Beaufort Seas. The gremlins seemed to strike, however, from flow ice to the spectacular failure of its oil spill containment dome during tests in Washington’s inland waters.

The dome was “crushed like a beer can,” said a report from a U.S. Interior Department inspector.

The Coast Guard and Interior have launched investigations of Shell’s operations.

“These serious transportation logistics and drilling failures — collectively — provide strong evidence of Shell’s inability to effectively undertake oil drilling in the harsh environment of the Arctic Ocean and raise questions about the company’s capacity to do so,” said Lois Epstein of The Wilderness Society in Alaska.

The Beaufort and Chukchi Seas have experienced unprecedented ice melt during global warming. They are home to the polar bear, which has been listed as threatened under the Endangered Species Act due to the changing climate of its Arctic environment. With changing water conditions, the Chukchi Sea has become a feeding ground for the gray whales that migrate from Baja, California, waters to Alaska each year.

Oil companies and Alaska officials have relentlessly pushed offshore drilling. The Bush administration conducted lease sales, and Arctic drilling has become part of the Obama administration’s self-described “all of the above” energy exploration strategy.

“Mapping the next steps for the Kulluk and Noble Discoverer is a multi-faceted operation, and (Monday’s) update is a result of new planning being solidified,” Shell said in a statement. The company said the Kulluk would be towed to “A shipyard in Asia with a suitable dry dock.”

The Kulluk was being towed to Puget Sound waters in December when it repeatedly broke its tow lines in the Gulf of Alaska.